Many of the income tax rules for Indian crypto investors changes announced in Budget 2022 will take effect on April 1, 2022, across the country. One is a new income tax law on cryptocurrency and other digital assets. According to the Union Budget 2022, gains on digital assets, such as bitcoins will be taxed at a flat 30% rate. It will be with a 1% TDS and gift tax to be paid by the receiver of the digital asset as a gift under specific situations.

The new crypto tax law being imposed in a country with the largest youth population is hard to believe

Most people want to think it’s an April Fool’s joke by Indian Government#AprilFoolsDay

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A Mumbai-based tax and Indian crypto investor expert, Balwant Jain, stated, “In India, cryptocurrency tax would be enforced in the new financial year.” “From April 1, 2022, all digital asset investors will have to pay a flat 30% tax on their digital asset income. Aside from that, the purchaser of digital assets will be required to deduct 1% TDS. TDS of 1% will have to be deducted from the purchase price. HOWEVER, this TDS provision will take effect on July 1, 2022. Aside from that, the definition of the property has been amended to incorporate digital assets as of April 1, 2022. When the total value of all gifts exceeds 50,000 in a single financial year, any gift, including digital assets, received from an unspecified relative would be regarded as income.”

According to Balwant Jain, a taxpayer should include the gift amount of digital assets when determining the net gift amount accepted by non-specified relatives as of the next fiscal year.

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Sujit Bangar, Founder of Taxbuddy.com and an Indian crypto investor, echoed Balwant Jain’s sentiments, saying, “The gain on bitcoin sales will be taxed at 30%. Only the ‘cost of acquiring cryptocurrency’ can be deducted from the sell consideration. Other expenses will not be allowed to be deducted. Due to the lack of set-off for losses from other sources of income, having net positive trading in bitcoin will become increasingly difficult. These taxes would almost probably influence cryptocurrency transaction post-tax returns.”

Sujit Bangar of Taxbuddy.com highlighted how TDS would be applied to digital assets like cryptocurrency and bitcoins. “For transactions involving cryptocurrency, a 1% TDS has been proposed. We may sell cryptocurrency for a profit or a loss, but a TDS of 1% will almost certainly occur. We are entitled to a reimbursement of TDS paid on a transaction that resulted in a loss. As a result, if you’ve made cryptocurrency transactions, it’s a good idea to file an income tax return.”

Best and the First Historic #Crypto Speech in Indian Parliament. pic.twitter.com/znioco6YRS

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